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In what would boost the government’s plan to opt for a steep diesel price rise, the underrecovery on the fuel for the second fortnight of this month rose to Rs 14.5 a litre, compared with Rs 12.12 a litre in the previous fortnight.
The Cabinet committee on political affairs would take a decision on a steep rise in diesel prices soon. It was reported the petroleum ministry might increase prices by at least Rs 3 a litre, against the mandated rise of 50 paise/litre a month, following an increase in international prices and its subsequent impact on under-recoveries.
In January, it was decided diesel prices would be decontrolled in phases.
In September, for kerosene and domestic liquefied petroleum gas (LPG), underrecoveries stand at Rs 36.83 a litre and Rs 470.38 a cylinder, respectively. The prices of kerosene and domestic LPG distributed through the Public Distribution System are determined monthly.
Oil marketing companies are incurring a high combined daily underrecovery of about Rs 486 crore on sales of diesel, kerosene and domestic LPG. For the previous fortnight, this stood at Rs 461 crore. For these three products, oil marketing companies have reported Rs 25,579 crore of underrecoveries for the quarter ended June.
On Friday, the international crude oil price of the Indian basket rose a fraction to $110.68 a barrel, compared with $110.61 a barrel on Thursday.
In rupee terms, the crude oil price increased to Rs 7,060.28 a barrel, primarily due to the rupee’s depreciation.
On Friday, the rupee stood at 63.79 a dollar.
